Effective tax rate comparison time
Here we are. It's 2017 and it's tax season. All of you good financial people have had your taxes done for months now, right?
Ok, enough joking around. I am supposed to be good at this whole finance thing, so how good am I? let's see how I stack up against the pro's:
Yes these rates are from various years and various swaths of life. I would be willing to bet the average American is not happy to see how little these elites actually pay, while they preach endlessly about how much we should pay. Is any politician a flat tax proponent? Didn't think so, and it's pretty obvious why.
I did an article a while ago mirroring many other skeptics viewpoints, analyzing Bernies' taxes because I thought the 13% number had to be bogus. Turns out it wasn't at all, and he made that killing on salary of 205k. Impressive Bernie, hats off to you for kicking all of our butts. So here is my rate:
I won't disclose my marginal tax rate here, because from it one could infer my income. Naturally for somebody with a federally mandated tax rate of 28% it would be more difficult to reach 17% than say, somebody with a 25% tax rate. Many Americans have a rate that is even lower by default. Check this out from the IRS:
Notice how none of the presidents/companies/candidates listed above payed a bracket above 25%. That equates to about a salary of 40k a year with no deductions (sounds a lot like the average citizen right?)
If you want to run with the big dogs you need to get your taxes as low as possible. I have been saying this for a while:
"It is much easier to reduce your taxes by 10% than it is to earn 10% more" -DDave
So apparently we all need to start having socialists give us tax advice, because they got it figured out even better than the capitalists! Seriously, take everything everybody says with a grain of salt and do some research as to exactly how the rich get their taxes lower. A lot of their techniques involve strategies that us poor people can use too, just on a much smaller scale.